The pie charts below say it all. The iPhone OS (including iPod touch) is making significant headway into the PSP and to a lesser extent, the Nintendo DS’s revenue streams. The numbers have to be especially painful for Sony who had four times as much revenue as Apple in 2008 which dropped to just over half of Apple’s revenue in 2009.

With the iPad set to be released in coming weeks around the globe, the iPhone OS is poised to grab even more of that Portable Gaming revenue.

When console games are added, the iPhoneOS still commands 5% of the market compared to 1% in 2008.